City Council to Clarify SkyWest Lease Terms, Optimize Airport Terminal Billing
- Steve Jurrens
- Nov 17
- 2 min read
Northeast Radio SD News - Watertown, SD - The Watertown City Council is scheduled to vote as part of the consent agenda on an Addendum to the Airline Transportation System Lease Agreement with SkyWest Airlines Inc. during its upcoming meeting on Wednesday, November 19, 2025. The proposed amendment is intended to clarify the terms for SkyWest's use of space within the Watertown Regional Airport terminal.
The original lease agreement was approved and signed in July 2025. According to City Manager Alan Stager, the primary goal of the addendum is to clearly define the areas designated for Exclusive Use Space and Common Use Space, and to establish the square-foot rental rates for both formally. Stager recommends approving the authorization to move forward with the addendum.
The Addendum will establish the correct rental rates and square footage for appropriate billing by the Finance Department. The revised terms of the Addendum specify the following annual rental fees for SkyWest Airlines, which will be paid in monthly installments:
· Exclusive Use Space: The Airline will have exclusive use of approximately 1,810 square feet. This space includes office areas, two ticket counters, and a gate ticket counter.
o Rate: $30.00 per square foot per annum.
o Annual Fee: $54,300.
o Monthly Installment: $4,525.
· Shared Joint Use Space (Common Use): SkyWest, its employees, and invitees will share approximately 4,699 square feet of joint use space with others. This area includes the baggage claim, security area, lobby, and other facilities adjacent to the terminal.
o Rate: $25.00 per square foot per annum.
o Annual Fee: $117,475.
o Monthly Installment: $9,789.58.
The combined annual fee for both exclusive and shared space is $171,775.00, totaling 6,509 square feet. All rental payments are due by the 15th day of each month.
